How does the $150k AGI rule work for real estate tax deductions against w-2 income?

[Devin Keener]

I'm new to real estate investing and own one rental and a primary residence. I recently found out about the separation between passive and active incomes and that there are rules about crossing the line on how you can claim passive rental losses against your active W-2 income. 

How is the Adjusted Gross Income calculated to determine if you fall into the $150k bracket? If my wife and I make $170k, would the standard deduction bring us down into the $150k range? I don't really understand how this works. I can't use the standard deduction if I itemize so would I rely on my itemized primary mortgage interest, taxes, 401k contributions, HSA contributions, etc to bring me down to the AGI of 150k and THEN take/tap into the passive deductions? Also since the benefit depreciates from $100k-$150k, what kind of passive loss can I claim against my W-2 income at $150k? (My passive losses for the rental are about $20k/year including the depreciation)

TL:DR - Can someone explain to me how the $150k AGI income rule works when claiming passive losses against active income?

Thanks,

Devin